Global Value Chain in Agro-export Production and Its Socio-economic Impact in Michoacán, Mexico

Lucie Crespo Stupková

DOI 10.7160/aol.2016.080103
No 1/2016, March
pp. 25-36

Crespo Stupková, L. (2016) “Global Value Chain in Agro-export Production and Its Socio- economic Impact in Michoacán, Mexico", AGRIS on-line Papers in Economics and Informatics, Vol. 8, No. 1, pp. 25 - 36. ISSN 1804-1930. DOI 10.7160/aol.2016.080103.

Abstract

Mexican blackberry production is very geographically concentrated in the Valley Los Reyes, where most of blackberries, which the country exports, are produced. Taking into account that Mexico is the world's largest exporter of this fruit in terms of quantity; we can conclude that a relatively small area produces most of the blackberries that are traded worldwide. The paper aims to analyze the blackberry value chain and its local socio-economic impact. The main conclusion is that the global value chain of blackberries brings benefits for the small farmers and investors too, but it is necessary establish contract terms ensuring that contractors do not abuse their market power. Also it was demonstated the positive local socio-economic impact of the activity.

Keywords

Global value chain, blackberry, socio-economic impact, Michoacán, contract farming.

References

  1. Berry B., Conkling E., Ray M.. The Global Economy in Transition (1997) "Pearson Educación", Prentice Hall, Upper Saddle River, New Jersey, ISBN 0-13—505264-5.
  2. Chollett, D. (2009) "From Sugar to Blackberries: Restructuring Agro-export Production in Michoacán, Mexico". Latin American Perspectives. Vol. 36, No. 3, pp. 79-92. ISSN 1552-678X. DOI 10.1177/0094582X09334158.
  3. Eaton, C. and Shepherd, A.(2015) "Contract farming: Partnerships for Growth". 2001. FAO Agricultural Services Bulletin. [Online] Available: http://www.fao.org/docrep/014/y0937e/ y0937e00.pdf [Accessed: 7 September. 2015]. ISBN 92-5-104059-1.
  4. Gereffi, G., Fernandez-Stark K. (2011) "Global Value Chain Analysis: A Primer. Center on Globalization, Governance & Competitiveness (CGGC)", Duke University, Durham, North Carolina, USA, [Online] Available: http://www.cggc.duke.edu/pdfs/2011-05-31_GVC_analysis_a_ primer.pdf [Accessed: 23 August, 2015].
  5. Haggblade S., Theriault V., Staatz J., Dembele N. and Diallo B. (2012) "A Conceptual Framework for Promoting Inclusive Agricultural Value Chains". Michigan State University Department of Agricultural, Food and Resource Economics. [Online] Available: http://fsg.afre.msu.edu/IFAD- WA/conceptual_framework.pdf. [Accessed: 7 September. 2015].
  6. Humphrey, J. and Schmitz, H. (2000) "Governance and Upgrading: Linking Industrial Cluster and Global Value Chain". IDS Working Paper 120, Institute of Development Studies, University of Sussex, Brighton. ISBN 1 85864 3341.
  7. ITC (International Trade Center).(2015) List of exporters for the selected product 081020. Trade Map. Trade statistics for international business development. [Online] Available: http://www. trademap.org/%28X%281%29S%28utisqj55wugzyr55e20tagnp%29%29/Country_SelProduct_ TS.aspx [Accessed: 8 July. 2015].
  8. Knox, P. and Agnew, J. (2002) "The Geography of the World Economy", Oxford University Press Inc., New York, ISBN 0340706120.
  9. Lee, J. and Gereffi, G. (2015) "Global Value Chains, Rising Power Firms and Economic and Social Upgrading", Critical Perspectives on International Business, Vol. 11, No. (3/4), pp. 319-339. ISSN 1742-2043. DOI 10.1108/cpoib-03-2014-0018.
  10. Lee J., Gereffi G. and Barrientos S. (2011) "Global value chains, upgrading and poverty reduction. Capturing the Gains - Economic and Social Upgrading", Briefing note 3 – November 2011. [Online] Available: http://www.capturingthegains.org/pdf/ctg_briefing_note_3.pdf Accessed: [Accessed: 15 September. 2015].
  11. Maertens, M. and Swinnen, J. F. M. (2009) "Trade, standards, and poverty: Evidence from Senegal". World Development, Vol. 37, No. 1, pp. 161-78. ISSN: 0305-750X. DOI 10.1016/j.worlddev.2008.04.006.
  12. Morales, C. and Sánchez, M. (2012) "Competitividad internacional de agronegocios: el caso de la zarzamora mexicana". ALAFEC, [Online] Available: http://www.morales-troncoso.com/doc/ pdf/alafec2012.pdf [Accessed: 23 July. 2015].
  13. Nadvi, K. (2014) "Rising Powers' and labour and environmental standards". Oxford Development Studies, Vol. 42, No. 2, pp. 137-50. ISSN 1469-9966. DOI 10.1080/13600818.2014.909400.
  14. National Institute of Geography and Statistics (NIGS) (2010, 2005, 2000) Services and goods in households, Housing characteristics, 2010, 2005, 2000. Employment rate. Women employment rate. 2010, 2005, 2000. [Online] Available: http://www3.inegi.org.mx/sistemas/temas/default. aspx?s=est&c=17484 [Accessed: 20 November. 2015].
  15. National Institute of Geography and Statistics (NIGS) (2015) Balance of trade of Mexico. [Online] Available: http://www.inegi.org.mx/prod_serv/contenidos/espanol/bvinegi/productos/continuas/ economicas/exterior/mensual/ece/bcmm.pdf [Accessed: 23 September. 2015].
  16. OECD, WTO and World Bank Group.(2014) Global Value Chains: Challenges, Opportunities, and Implications for Policy. [Online] Available: http://www.oecd.org/tad/gvc_report_g20_july_2014. pdf [Accessed: 2 September. 2015].
  17. OECD/WTO (2014). Aid for Trade 2011: Results Emerging From the Case Stories, OECD/WTO, Paris and Geneva in OECD, WTO and World Bank Group. Global Value Chains: Challenges, Opportunities, and Implications for Policy. [Online] Available: http://www.oecd.org/tad/gvc_report_ g20_july_2014.pdf [Accessed: 2 September. 2015].
  18. Palacio-Prieto, J. L., Sanchéz-Salazar, M. T., Casado-Ozquerdo, J. M., Propin Frejomil, E., Delgado Campos, J., Velázquez Montes, A., Chias Becerril, L., Ortiz Álvarez, M. I., González Sánches, J., Negrete Fernández, G., Gabriel Morales, J., Márquez Huitzil, R. (2004) "Indicadores para l a caracterización y el ordenamiento territorial". Universidad Nacional Autónoma de México. [Online] Available: https://books.google.com.mx/books?id=_kvT8mQKH_QC&pg=PA11&lpg=PA11&dq [Accessed: 11 September. 2015]. ISBN 970-32-1885-7.
  19. Pye-Smith, Ch. (2013) "Policy Pointer: Value Chains for transforming smallholder agriculture". Technical Centre for Agricultural and Rural Cooperation. Wageningen, Netherlands. ISBN 2212-6333.
  20. Sánchez, G. (2008) "La red de valor de la zarzamora, El cluster de Los Reyes, Michoacán: Un ejemplo de reconversión competitiva." Morelia: Fundación Produce Michoacán. Serie: Sistema de Inteligencia de Mercados para Desarrollo Competitivo del Sector Agropecuario del Estado de Michoacán, Vol. 6. [Online] Available: www.siac.org.mx/tecnos/14mich.pdf [Accessed: 27 July. 2015].
  21. SIAP (Agricultural and Fishery Information Service) (2014) Anual Production of Blackberry SAGARPA (Department of Agriculture, Rural Development, Fishery and Alimentation). [Online] Available: http://www.siap.gob.mx/cierre-de-la-produccion-agricola-por-estado/. [Accessed: 7 September. 2015].
  22. STPS (Department of Labor and Social Welfare) (2015) Minimum wages, National Commission on Minimum Wages, April 2015. [Online] Available: http://www.conasami.gob.mx/boletin_nvos_ sal_abril_2015.html. [Accessed: 8 September. 2015].
  23. Thiébaut, V. (2011) "Rural Landscape and Export Crops. Valle de Los Reyes, Michoacán". Trayectorias año 13, enero-junio 2011, No. 32, pp. 52-70. ISSN 2007-1205.
  24. Thiébaut, V. (2012) "La transformation des paysages agraires mexicains. Cultures de la canne à sucre et de la mûre dans la vallée de Los Reyes, Michoacán", Cybergeo: European Journal of Geography (Online), Environment, Nature, Landscape, [Online] Available: http://cybergeo.revues.org/25615?lang=en [Accessed: 10 September 2015]. ISSN 1278-3366. DOI 10.4000/cybergeo.25615.
  25. Thiébaut, V. (2009) "De la caña a la zarzamora". Estudios Michoacanos XIII. Colegio de Michoacán, A. C. ISBN 978-607-7764-15-1.
  26. Tsigas, M. and Ferrantino M.. (2014) "Modeling the Benefits of Trade Facilitation for the G20, USITC Working Paper, Washington D.C. in OECD, WTO and World Bank Group. Global Value Chains: Challenges, Opportunities, and Implications for Policy. [Online] Available: http://www. oecd.org/tad/gvc_report_g20_july_2014.pdf [Accessed: 2 September. 2015].
  27. UNCTD (United Nations Conference on Trade and Development) (2013) "Global value chains and development". [Online] Available: http://unctad.org/en/PublicationsLibrary/diae2013d1_en.pdf [Accessed: 27 August. 2015].
  28. UNCTD (United Nations Conference on Trade and Development) (2013) "World Investment Report", Global Value Chains: Investment and Trade for Development. 236 p. [Online] Available: http://unctad.org/en/pages/PublicationWebflyer.aspx?publicationid=588 [Accessed: 20 August. 2015]. ISBN 978-92-1-112868-0
  29. Webber, M. and Labaste, P. (2010) "Building Competitiveness in Africa’s Agriculture: A Guide to Value Chain Concepts and Application", Agriculture and Rural Development. The International Bank for Reconstruction and Development. The World Bank. [Online] Available https://openknowledge.worldbank.org/handle/10986/2401 [Accessed: 12 August. 2015] ISBN: 978-0-8213-7952-3
  30. Wiggins S. (2013) "African agriculture in a changing global context: lessons learned", Overseas Development Institute. Brussels Policy Briefing no. 33. [Online] Available: https://brusselsbriefings. files.wordpress.com/2013/10/br33_steve_wiggins.pdf. [Accessed: 7 September. 2015].

Full paper

  Full paper (.pdf, 1.46 MB).